Ukraine: Azovstal to suffer from railroad tariffs increase

The scheduled increase of railroad tariffs by 22.5% from October 1 will result in a significant increase of Azovstal products prime cost.

“The transport component in the prime cost structure of our products is some 10-12%. That’s because we have expenses not only while shipping rolled metal, but also while bringing raw materials to the enterprise. Of course, such an increase in railroad tariffs will lead to a considerable rise of our metal prime cost”, the company CEO Enver Tskitishvili told the infrastructure minister Vladimir Omelyan.

Minister was surprised by this, as, according to him, the Ukrzaliznytsia director informed him that the transport component in the rolled metal prime cost did not exceed 3%. (Ukrainian metal)